Uchumi supermarkets chain reopens
Jul 16, 2006
KENYA’S retail chain Uchumi Supermarkets reopened on Saturday after the government stepped in to rescue it.
By Reuben Olita in Nairobi
KENYA’S retail chain Uchumi Supermarkets reopened on Saturday after the government stepped in to rescue it.
Trade and industry minister Mukhisa Kituyi officiated at the reopening of the five branches at the Sarit Centre Branch in Nairobi with a promise that the government would not allow it to fall again.
Kituyi revealed that the government had injected Ksh975m while shareholders had agreed to inject a further Ksh300m to give the chain a new lease of life.
The supermarket chain went under on June 1 after being declared insolvent by the previous management.
Five branches of the supermarket, Uchumi, Langata, Mombasa Road, Ngong Road Hyper and the City Square Branch on Aga Khan Walk, reopened their doors again after remaining closed for nearly six weeks.
On Friday, the stores’ loyal customers milled around most of the branches hoping to purchase their weekend supplies after press reports indicated that the chain would be reopened.
Disappointed, they however said they will await the official reopening Saturday.
And at the Uchumi stores head offices, former employees camped at the gate hoping to be hired again.
But some were disappointed.The chain has a new management team headed by Bernard Ciano who is expected to turn around the fortunes of the troubled firm.
Established in 1975, Uchumi is the oldest and largest retail in Kenya with a network of 20 retail outlets.
The reopening of Uchumi will initially take place under legal protection of the current receivers appointed by Kenya commercial bank and PTA, the two major creditors.
The chain owes creditors over Ksh3b under the asset base of Ksh1.8b.
KENYA’S retail chain Uchumi Supermarkets reopened on Saturday after the government stepped in to rescue it.
Trade and industry minister Mukhisa Kituyi officiated at the reopening of the five branches at the Sarit Centre Branch in Nairobi with a promise that the government would not allow it to fall again.
Kituyi revealed that the government had injected Ksh975m while shareholders had agreed to inject a further Ksh300m to give the chain a new lease of life.
The supermarket chain went under on June 1 after being declared insolvent by the previous management.
Five branches of the supermarket, Uchumi, Langata, Mombasa Road, Ngong Road Hyper and the City Square Branch on Aga Khan Walk, reopened their doors again after remaining closed for nearly six weeks.
On Friday, the stores’ loyal customers milled around most of the branches hoping to purchase their weekend supplies after press reports indicated that the chain would be reopened.
Disappointed, they however said they will await the official reopening Saturday.
And at the Uchumi stores head offices, former employees camped at the gate hoping to be hired again.
But some were disappointed.The chain has a new management team headed by Bernard Ciano who is expected to turn around the fortunes of the troubled firm.
Established in 1975, Uchumi is the oldest and largest retail in Kenya with a network of 20 retail outlets.
The reopening of Uchumi will initially take place under legal protection of the current receivers appointed by Kenya commercial bank and PTA, the two major creditors.
The chain owes creditors over Ksh3b under the asset base of Ksh1.8b.